Conditions to Qualify for Equitable Relief

1. Your marital status.
2. If you knew or had reason to know when signing the return about the items causing the understatement.
3. Whether you would suffer economic hardship without relief (inability to pay basic living expenses)

Will I lose my house and car if I declare bankruptcy?

In Alberta, property exempt from seizure in bankruptcy is set out in the Civil Enforcement Act and applies to the equity in an asset. In Alberta, the exemption for a car is $5,000. In this case, you have equity of $4,000 and your unsecured creditors cannot take this from you when you file for bankruptcy.

Can a self employed person file a Chapter 7 bankruptcy?

A self-employed person can file a Chapter 7 or Chapter 13 bankruptcy, but the debtor must determine and prove average income for the six months before the filing of the case. Why Income Verification Is Required in Chapter 7 and Chapter 13 Bankruptcy How to Verify Income If You Are Self-Employed

Can a plumber go bankrupt if he is self employed?

Most hand tools that you use personally to continue the running of your business are exempt from Bankruptcy. You are allowed to keep these to enable you to carry on working as long as they are not of excessive value. As such if you are a plumber you will be able to keep the tools in your van.

Can a sole trader or self employed go bankrupt?

Self employed people (sole traders) are allowed to go bankrupt and continue to run their business. However there are various implications.

What happens if you lose your home in bankruptcy?

Rent and mortgage arrears Even if you won’t lose your home as part of the bankruptcy, it may still be at risk if you’re behind on your rent or mortgage payments. The landlord or mortgage lender can still take action to recover the property if you’re in arrears.